Shareholders' Letter

Share of operating segments in net revenue in %
8%
Others
21%
Fastweb
Results of operations
Income statement
In CHF million, except where indicated 2010 2009 Change
Swisscom Switzerland 8,500 8,378 1.5%
Fastweb 2,562 2,783 –7.9%
Other operating segments 925 839 10.3%
Group Headquarters and elimination 1 1 –
Revenue from external customers 11,988 12,001 –0.1%
Swisscom Switzerland 3,804 3,675 3.5%
Fastweb 589 831 –29.1%
Other operating segments 340 351 –3.1%
Group Headquarters and elimination (136) (173) –21.4%
Operating income before depreciation and amortisation (EBITDA) 4,597 4,684 –1.9%
Net revenue 11,988 12,001 –0.1%
Goods and services purchased (2,665) (2,648) 0.6%
Personnel expenses (2,520) (2,577) –2.2%
Other operating expenses (2,510) (2,509) 0.0%
Capitalised self-constructed assets and other income 304 417 –27.1%
Operating expenses (7,391) (7,317) 1.0%
Operating income before depreciation and amortisation (EBITDA) 4,597 4,684 –1.9%
Depreciation, amortisation and impairment losses (1,972) (1,995) –1.2%
Operating income (EBIT) 2,625 2,689 –2.4%
Financial income and financial expense, net (365) (349) 4.6%
Equity in net income of affiliated companies 28 43 –34.9%
Income before income taxes 2,288 2,383 –4.0%
Income tax expense (502) (460) 9.1%
Net income 1,786 1,923 –7.1%
Share of net income attributable to equity holders
of Swisscom Ltd 1,811 1,926 –6.0%
Share of net income attributable to minority interests (25) (3) –
Average number of shares outstanding (in mio.) 51.798 51.800 –
Earnings per share (in CHF) 34.96 37.18 –6.0%
71%
Swisscom
Switzerland
Share of operating segments in EBITDA in %
4%
Others
13%
Fastweb
83%
Swisscom
Switzerland
Management Commentary 44 | 45
Financial review Group